Inside Apple’s CEO transition: Tim Cook’s $47M board role, John Ternus era, and App Store shakeup

On September 1, Apple went through a major leadership transition as Tim Cook stepped down as CEO, and John Ternus took over as the company’s new chief executive. While the transition is significant for the company, Cook is not exiting the company but retaining a crucial role as executive chairman of the board.

According to the latest Bloomberg report, Cook will continue to have considerable influence within the company, and that it also reflected in his $47 million pay package. Whereas Ternus's role comes at a crucial time, and he is said to get a noticeable head start with new product launches, and changes that were carefully planned.

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Tim Cook’s role as executive chairman

According to the report, Cook will play a crucial role at Apple by guiding long-term corporate strategy and board oversight.

However, his main responsibilities will center on maintaining high-stakes relationships with global policymakers and key government leaders, specifically with the U.S. White House and the Chinese government. He will also oversee international diplomatic challenges, regulatory compliance, and complex trade policies.

In addition, Cook will also look at supply chain challenges, manage semiconductor and memory shortages, and assist in corporate decision-making.

Cook’s pay package highlights his role at Apple

According to Apple’s recent SEC filing, Tim Cook will receive a total compensation of $47 million, down from $74 million in 2025. This includes a $2 million annual base salary and 45 million in equity, which is divided based on performance and time.

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Whereas, John Ternus will get $58 million as total compensation as Apple's CEO. However, this excludes performance bonuses. He will receive a $3 million annual base salary, $2.5 million stock award, and $55 million in equity. However, “75% of Ternus’ stock award is tied to how Apple performs relative to its peers, while only half of Cook’s is performance-based. Because of those differences, there is even an unlikely scenario in which Cook could ultimately realize more value from his 2027 package than Ternus does from his.”

Apple to revamp App Store strategy

Under Ternus, Apple is said to revamp its App Store strategy, shifting its focus to monetizing its services. The company aims to drive higher margins and squeeze additional recurring revenue out of the App Store platform. However, all could happen under Eddy Cue, and Phil Schiller, who ran the App Store, has announced his exit from the company. It is also suggested that Schiller objected to the move, and it is suspected to be the reason for his exit. In addition, developers have also shown resentment about Apple's App Store commission rates, rules, and restrictions. If Apple pushes harder to extract more revenue, it could increase tensions between Apple and third-party developers.